JPMorgan Takes Knife To CNOOC, Petrochina

Broker downgrades oil & gas majors as it expects Brent to drop below US$40 a barrel and a slow recovery.

By

JPMorgan

January 19, 2015

By

JPMorgan

January 19, 2015

Petrochina (857.HK, 601857.CH) (HKD8.77, CNY12.28, Jan.19, 2015). CNOOC (883.HK) (HKD10.62, Jan.19, 2015) PTT Exploration & Production (PTTEP.TB) (THB104, Jan. 19, 2015) JPMorgan We see significant oil oversupply with risk that Brent falls below $40/bl in the near term should the oil market not be able to accommodate a 1.6mb/d surplus.

JPMorgan’s Commodities team has materially revised down its 2015/2016 Brent forecast from US$82/bl to US$49/bl and US$87.75/bl to US$56.8/bl, respectively,and we see a U-shaped...